Is a College Degree Worth the Debt? How to Calculate Your ROI

7 min read · May 2026
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On average, a bachelor's degree holder earns about $1.2 million more over a lifetime than a high school graduate. But averages hide enormous variation by major, school, and career path. Here's how to run the numbers for your specific situation.

The simple ROI formula

Return on investment = (lifetime earnings premium − total loan cost) ÷ total loan cost × 100

Earnings premium = what you'd earn with a degree minus what you'd earn without one, over your whole career.

ROI varies enormously by major

MajorAvg starting salaryMid-career salaryROI tier
Computer Science$85,000$130,000Very High
Engineering$75,000$110,000Very High
Nursing$62,000$85,000High
Business$55,000$80,000High
Education$42,000$58,000Moderate
Liberal Arts$40,000$60,000Moderate
Fine Arts$38,000$52,000Low-Moderate

School cost matters as much as major

A computer science degree from a $15,000/year state school has dramatically better ROI than the same degree from a $60,000/year private school. The degree market doesn't always pay a premium for the brand — especially outside top-10 schools.

Run your own degree ROI calculation.

Degree ROI Calculator →

Non-financial value counts too

ROI calculations miss career flexibility, professional network, and doors that only open with a degree (law school, medical school, many government positions). For many careers, the degree isn't optional — the ROI question is which degree from which school at what cost.

The debt ceiling that changes the math

For most majors, ROI turns negative when total debt exceeds 1.5× starting salary. A $120,000 debt for a $40,000/year education job is a very different financial picture than a $120,000 debt for an $85,000/year engineering job.

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